Suppose the Dollar Appreciates in Value in the Foreign Exchange

question 49

Multiple Choice

Suppose the dollar appreciates in value in the foreign exchange markets. What is the impact on U.S.Real GDP?

• A) It rises because dollar appreciation shifts the U.S. AD curve leftward.
• B) It falls because dollar appreciation shifts the U.S. SRAS curve rightward.
• C) There is no effect on Real GDP since dollar appreciation does not affect either the U.S. AD or the U.S. SRAS curve.
• D) It depends on whether the U.S. AD curve shifts leftward by more or less than the U.S. SRAS curve shifts rightward.

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Definitions:

Diploid Zygote

A fertilized egg cell that has two sets of chromosomes, one set from each parent, representing the first stage in the development of a new individual.

Dioecious Plant

A plant species having male and female reproductive organs on separate individuals.

Cannabis Sativa

A species of the Cannabaceae family that includes hemp and marijuana, known for its psychoactive and medicinal properties.

Cross-pollination

The transfer of pollen from the anther of a flower of one plant to the stigma of a flower of another plant, promoting genetic diversity.